ArcLight lifts loan to $425 million, flexes to Libor plus 375 bps

By Sara Rosenberg

New York, April 12 – ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) upsized its seven-year senior secured term loan to $425 million from $400 million and reduced pricing to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

Also, the original issue discount on the term loan firmed at 99.5, the tight end of the 99 to 99.5 talk, the source said.

In addition, the incremental was revised to $35 million in the aggregate from $60 million.

The term loan still has a 1% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Security is a perfected first priority lien on all of the membership interests issued by the borrower, and all existing and future membership interests of the company owned by the borrower and all other assets of the borrower.

Barclays, Goldman Sachs Bank USA, MUFG and Natixis are the bookrunners on the deal. Barclays is the administrative agent.

Final commitments were scheduled to be due at noon ET on Monday, the source added.

Proceeds will be used to support the $830 million acquisition by an affiliate of ArcLight Capital Partners of a 25% stake in NGPL Holdings LLC, which indirectly owns 100% of Natural Gas Pipeline Co. of America LLC. The stake is being bought from Kinder Morgan Inc. and Brookfield Infrastructure Partners LP.

NGPL is a FERC-regulated natural gas pipeline system.

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